Observations
  • Home
  • Observations
  • Trendcasting
  • Odds 'n Ends
  • Science/Technology/Experiments
  • Mental Health

Twinkies really do have an expiration date...

11/23/2012

0 Comments

 
Picture
There has been a great deal of attention to the Hostess and Interstate baking company as they contemplated closing the entire operation that has manufactured the venerable trade-named products Wonder Bread, Ding Dongs, and of course, Twinkies. There has always been a joke that Twinkies were bomb-proof and would survive forever. But, they did have a useful  shelf life: that is until this week when a bankruptcy court allowed Hostess to shut down operations completely. But, there are several aspects to the story that have only been reported minimally as the 80 year old company ceased manufacturing activities. Perhaps the most significant part of the saga is that 18,000 people will be out of a job when it seems that the economy will not support these employees for some time to come. But, the back-story has some serious questions that can only be answered by the participants in a very high stakes game.
First, it was widely reported that the Baker's union would rather lose their jobs than concede more pay and benefit cuts. And, while this seems like a "cut off your nose" moment, it has to be viewed in the context that the present CEO and past CEO's and the management team have payed themselves more than the profit margins would allow. And, that bankrupting the company would provide more money to the departing leadership of the company.
But, there is a more serious problem and that is Hostess failed to change any of its products as the consumer needs changed. The idea that you could continue to sell overly sweet products with virtually no nutritional value seems ludicrous at best. It reminds me of the Post Office failing to re-tool when they realized that email would be a serious threat to their business. The trend, as I see it, is that companies that are inflexible and work only to satisfy investors will fail, whether unions shops or not.
On a lighter Twinkies note, Rice University began the T.W.I.N.K.I.E.S project in 1995 to subject the product to some very bizarre tests. You can see the results here.
Meanwhile, I will be thinking about the 18,000 displaced employees who now have to face the changing world of commerce with an uncertain future... Ken



0 Comments



Leave a Reply.

    Picture

    Archives

    June 2021
    October 2020
    March 2020
    December 2019
    August 2019
    April 2019
    October 2018
    April 2018
    January 2018
    October 2017
    June 2017
    April 2017
    January 2017
    December 2016
    November 2016
    October 2016
    August 2016
    May 2016
    April 2016
    December 2015
    November 2015
    September 2015
    July 2015
    June 2015
    May 2015
    March 2015
    February 2015
    November 2014
    October 2014
    September 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011

    Categories

    All
    Advertising 1895
    Applications
    Bulb Act
    Cgi
    China Concerns Again
    Cloud Computing
    Drones
    End
    Family Mediation
    Gas Prices
    Gesture Technology
    Google Antitrust
    Grocery Deception
    Heathkit
    Infolust
    Infrastructure Failure
    Mechanical Computer
    Medical Devices
    Medication Mistakes
    Mental Health
    Original Ideas
    Pc
    Politics Of Fear
    Post Office
    Recycled News
    Rushing To Judgement
    Salmonella
    Siri
    Social Media Business
    Sopa
    Stock Market
    Texting
    Trendcasting
    Urine
    Wireless
    World

    RSS Feed

Powered by Create your own unique website with customizable templates.